Correlation Between Apple and Hamilton Beach

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Apple and Hamilton Beach at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Apple and Hamilton Beach into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Hamilton Beach Brands, you can compare the effects of market volatilities on Apple and Hamilton Beach and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Apple with a short position of Hamilton Beach. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Hamilton Beach.

Diversification Opportunities for Apple and Hamilton Beach

-0.67
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Apple and Hamilton is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Hamilton Beach Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Beach Brands and Apple is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Apple Inc are associated (or correlated) with Hamilton Beach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Beach Brands has no effect on the direction of Apple i.e., Apple and Hamilton Beach go up and down completely randomly.

Pair Corralation between Apple and Hamilton Beach

Given the investment horizon of 90 days Apple is expected to generate 8.77 times less return on investment than Hamilton Beach. But when comparing it to its historical volatility, Apple Inc is 1.67 times less risky than Hamilton Beach. It trades about 0.01 of its potential returns per unit of risk. Hamilton Beach Brands is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,028  in Hamilton Beach Brands on December 30, 2023 and sell it today you would earn a total of  1,408  from holding Hamilton Beach Brands or generate 136.96% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Apple Inc  vs.  Hamilton Beach Brands

 Performance 
       Timeline  
Apple Inc 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.
Hamilton Beach Brands 

Risk-Adjusted Performance

12 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Hamilton Beach Brands are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating fundamental drivers, Hamilton Beach sustained solid returns over the last few months and may actually be approaching a breakup point.

Apple and Hamilton Beach Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Apple and Hamilton Beach

The main advantage of trading using opposite Apple and Hamilton Beach positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Hamilton Beach can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hamilton Beach will offset losses from the drop in Hamilton Beach's long position.
The idea behind Apple Inc and Hamilton Beach Brands pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Check out your portfolio center.
Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

Other Complementary Tools

Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Equity Valuation
Check real value of public entities based on technical and fundamental data
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Bonds Directory
Find actively traded corporate debentures issued by US companies
AI Investment Finder
Use AI to screen and filter profitable investment opportunities
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges